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The acquisition is expected to enable Enbridge to meet regional energy needs and support increasing demand for west coast LNG exports.
Enbridge announced that, through a wholly owned subsidiary, it has entered into a definitive agreement with FortisBC Holdings to acquire its interest in FortisBC Midstream for $400 million, subject to customary closing adjustments. FortisBC Midstream holds a 93.8% interest in Aitken Creek Gas Storage facility and a 100% interest in Aitken Creek North Gas Storage facility (collectively, Aitken Creek Storage).
Aitken Creek Storage, an underground reservoir located 120 kilometers northeast of Fort St. John, B.C., is the largest and only underground natural gas storage facility in B.C., with a total working gas capacity of 77 billion cubic feet. Situated in the heart of the Montney production region, Aitken Creek Storage connects to all three major long-haul natural gas transportation lines in Western Canada, including Enbridge's Westcoast Pipeline and Alliance Pipeline.
"Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports," said Cynthia Hansen, Enbridge Executive Vice President and President, Gas Transmission and Midstream. "Natural gas plays an increasingly important role in the energy transition, and this investment further aligns with Enbridge's focus on providing the affordable, sustainable, and reliable energy that is needed now and into the future."
The transaction is expected to close later in 2023, subject to receipt of customary regulatory approvals and closing conditions. BMO Capital Markets acted as exclusive financial advisor, and Dentons Canada LLP acted as exclusive legal advisor on the transaction.